The company uses the perpetual inventory method Record the following events in t
ID: 2772194 • Letter: T
Question
The company uses the perpetual inventory method Record the following events in the general journal. Purchased $20,000 of merchandise inventory from a supplier, Kelly Distributors, Inc. The terms of the purchase: 2/10, n/30 and FOB shipping point. Paid $450 cash for freight to trucking company to have goods shipped from Kelly Distributors. Inc. Sold merchandise for $4.000 to a customer on account. The merchandise had cost Turner $2,800. Returned $2,500 of defective merchandise to Kelly Distributors. Inc. Paid amount due on account to Kelly Distributors for merchandise purchased on January 3. Accepted a return of $750 of the goods sold on January 7. The cost of these goods was S550.Explanation / Answer
Ans)
Date Particular DR Amt CR Amt 3 Purchase A/C Dr 20000 To Kelly Distrubutors 20000 5 Fright A/c Dr 450 To Cash 450 6 Debtor A/c Dr 4000 To Sale 2800 10 Kelly Distrubutors A/c Dr 2500 To Purchase 2500 11 Kelly Distrubutors A/c Dr 17500 To Cash 17500 12 Sale A/c Dr 750 To Debtor 750